Ford Motor is observing higher steel and aluminum costs driven by trade tariffs bite into revenue, but is hopeful the United States and China can prevent more tensions that could make things more expensive, a top Ford executive stated on Monday.
The United States stated in March it would enforce a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum from majority of nations. The tariffs have permitted U.S. steel producers to raise their costs.
“They’re certainly up year over year and they’re up versus what we were expecting,” stated Joe Hinrichs, Ford executive vice president and president of global operations, regarding steel and aluminum costs.
U.S. steel prices are highest in the world, Hinrichs told reporters. Ford authorities have been working with all the parties involved, consisting the U.S. government, to address the issues, he stated at a plant located in Wayne, Michigan, to celebrate next week’s production release of the Ranger midsize pickup truck.
While the United States reached a new regional trade agreement with Canada and Mexico during previous month, the tariffs are still an issue. In addition, the United States and China are locked in a trade war in which they have lobbed progressively severe rounds of tariffs on imports of each other.